Percentage Price Oscillator (PPO)

Optuma Forums Optuma Scripting Percentage Price Oscillator (PPO)

This topic contains 1 reply, has 2 voices, and was last updated by  Peter 1 day, 11 hours ago.

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • #47931
    Darren
    Darren
    • Topics: 28
    • Replies: 131
    • Posts: 159

    The Percentage Price Oscillator (PPO) is similar to the MACD in that it calculates the difference between two moving averages, but the key difference is that the PPO calculates the percentage difference, not the MACD’s absolute difference.

    We can create this as a custom tool, using the following formula for a 12/26/9 PPO:

    Once created, save as an indicator in a New Tool View so that when applied to a chart it appears in it’s own panel below the price chart:

    Capture

    Capture

    Because these are percentage values it makes it easy to compare momentum between securities, rather than MACD. In this example the ASX Telecoms sector has the highest PPO Histogram value (ie momentum) at 0.87%. Compare that to Health Care which has a MACD Histogram value of 165 points, but that only represents 0.52% of the value of the index.

    Capture

     

    #48315

    Peter
    • Topics: 7
    • Replies: 7
    • Posts: 14

    Darren, what script are you using for the MACD-H in this example? Can the bars in the PPO  histogram be coloured red for negative and green for postive.

    Thanks Peter

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.

Pin It on Pinterest

Share This

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close